Korean Air

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  • Topic: SkyTeam, Airline, Korean Air
  • Pages : 6 (1717 words )
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  • Published : May 13, 2011
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Introduction
Korean Air is the largest airline company in South Korea which located in Soul. Korean Air was established in March 1st, 1969. Korean Air currently transports an average of more than 20 million passengers per year. Since 2004, Korean Air has been the world leader in the international cargo transport sector (Korean Air Co Ltd, 2011). Korean Air is the top 20 airlines in the world in terms of passengers carried and is also the top-ranked international cargo airline (Korean Air Co Ltd, 2011). In December of 2010, Korean airline got the award of Internet Customer Satisfaction Award (e-Global Category) (Korean Air Co Ltd, 2011). This report will focus on Korean Air and explore the market environment, strategy of Korean Air and further discuss about product features, outline the route structure, key target market, and brief discuss the ownership, strategic alliance, distribution channels, competitive advantages and medium-term survival prospects.

Methodology
This report will base on the source from credible website, which includes Korean Air main website and other relevant website (the link will provide in Reference page). However, the resource from the customer discussion board is the other important source in this report.

Product Feature
Korean Air is based on the comfortable level which got the Best First Class Award. Korean Air has been promoted as provides high scores in particular for First Class in flight seating and facilities, check-in system and customer service and loyalty.  Kosmo Suites which is famous as one of the first class product of Korean Air. The Kosmo Suites provide very spacious, comfortable seats which are 5.5 inches wider than previous first class seats. The comfort, freedom and privacy are guaranteed during the flight (Korean Air Co Ltd, 2011). However, as the video commercial of Korean Air show on YouTube, Korean Air focus on the ‘Excellence in Flight’, and promote the operational excellence, service excellence and innovative excellence.

Route structure and network
As Figure 1 and Figure 2 provided below (the detail figure will provided at the end of report), Korean Air's has provided the international service among 113 cities in 39 countries in the world, in the same time, Korean Air also provided domestic division serves 13 destinations (Korean Air Co Ltd, 2011). China, Japan and USA are the top three destination countries for the Korean Air. China has 23 cities to access Korean Air, Europe has 21 cities and south-east Asia 18 cities, USA has 16 cities and Japan has 15 cities, cities (Korean Air Co Ltd, 2011). .

Figure 1: International Route of Korean Air

Figure 2: Domestic Route of Korean Air
Key Markets
Korean Air currently transports an average of more than 20 million passengers per year. Korean Air is the largest airline company in South Korea which located in Soul. Korean Air has target on world wild customer, which provides both long haul travel route and short haul route. Korean Air has hold 6.6% global markets share in 2006 (Choi, 2007) and the SkyTeam has hold 19% of global market share in 2009 (Air France, 2011). Korean Air also is the biggest capacity provider on Trans-Pacific route (Choi, 2007). Korean Air has taken 36% of market share in number of passengers in Korean, 19% of market share in number of passengers in Japan and 12% of market share in number of passengers in America (Korean Air sustainability report, 2010).

Ownership
Korean Air Lines Co., Ltd. (KAL) is South Korea's leading airline which is belongs to the giant Hanjin Group, which has deals in land, sea, and air transport, construction, heavy industry, finance, and information services. KAL has embarked upon a huge fleet expansion to handle the increase in overseas travel in and out of Korea; the average age of its airliners is less than eight years. In 1997, 25.5 million passengers flew KAL, which boasts the largest cargo operations of any passenger airline...
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